Thursday, July 24, 2025, 08:14:53 AM Tesla (NASDAQ: TSLA) reported Q2 2025 results, with total revenue falling 12% YoY to $22.50 billion but rebounded 16% from Q1 2025. Breaking it down, automotive sales dropped 16% YoY to $15.79 billion despite a 16% sequential bounce. In addition, regulatory credit revenue slid 51% YoY to $439 million, removing a key profit crutch. Energy revenue contracted 7% YoY while Services and Other climbed 17%. Gross profit contracted 15% YoY to $3.88 billion, yet margin ticked up quarter-over-quarter to 17.2% as raw material costs eased. Operating expenses were relatively flat YoY but rose 7% sequentially to $2.96 billion, driven by a 48% surge in R&D tied to autonomy projects. Operating income therefore plunged 42% YoY to $923 million and the 4.1% operating margin barely recovers half of last year’s 6.3% benchmark. Net income fell 16% YoY to $1.17 billion, though it tripled versus Q1’s post-price war period. Adjusted net income of $1.39 billion was 23% lower than a year ago, with adjusted EBITDA down 7% YoY to $3.40 billion. Operating cash flow slid 30% YoY to $2.54 billion. Heavier capex of $2.39 billion, a 60% jump QoQ, left free cash flow at a meagre $146 million—an 89% YoY collapse and a fraction of the $760 million Wall Street expected. *TESLA 2Q FREE CASH FLOW $146M, EST. $760M